Technical Standards for the Marketing of Participation Quotas of Open Investment Funds — BCR — SV

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Norte Ave, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

THE TECHNICAL COMMITTEE OF THE CENTRAL RESERVE BANK OF EL SALVADOR, CONSIDERING:
I. That Article 26 of the Investment Funds Law establishes that persons who work with the Manager or its agents in the marketing of participation quotas of the Funds must be authorized by the Superintendency of the Financial System, in accordance with the technical standards issued by the Central Reserve Bank of El Salvador.
II. That Article 46 of the Investment Funds Law establishes that the primary placement of participation quotas of the Funds may be carried out directly by the Manager, through Stockbrokerage Houses, or by other legal entities authorized by the Board of Directors of the Superintendency of the Financial System, in accordance with the requirements established by technical standards issued by the Central Reserve Bank of El Salvador.
III. That Article 57 of the Investment Funds Law establishes that, in the case where the Internal Regulations of an Investment Fund so provide, the agents of the Manager may receive redemption requests for participation quotas and deliver the payment to the participants.
IV. That Article 1, paragraph a) of the Law for the Supervision and Regulation of the Financial System establishes that it is the responsibility of the Superintendency of the Financial System to authorize, suspend, or cancel the operation of persons or transactions carried out in the stock market, in accordance with the applicable provisions.
V. That Articles 7 and 35 of the Law for the Supervision and Regulation of the Financial System establish that members of the financial system must adopt policies and mechanisms in matters of risk management and code of conduct that are consistent with international best practices. In this sense, the International Organization of Securities Commissions (IOSCO) indicates that the regulatory system must establish standards for the eligibility, governance, organization, and conduct of those who wish to market collective investment schemes.
VI. That Article 1, second paragraph of the Special Law for the Prevention, Control, and Sanction of Money Laundering, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction establishes that the aforementioned law will be applicable to any national or foreign person, even if the latter are not legally constituted, who must provide the information required by the competent authority in the exercise of its functions.

(3)

THEREFORE, by virtue of the regulatory powers conferred by Article 99 of the Law for the Supervision and Regulation of the Financial System, AGREES to issue the following:

TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS

CHAPTER I
OBJECT, SUBJECTS, AND TERMS

Object
Art. 1.- These Standards aim to establish the minimum requirements and other provisions that legal entities, as well as natural persons who work for them or for the Managers, who have an interest in marketing participation quotas of Salvadoran Open Investment Funds, must comply with, as well as to detail the applicable provisions regarding the marketing service provided.

Subjects
Art. 2.- The subjects obliged to comply with the provisions established in these Standards are:
a) Investment Fund Managers authorized by the Superintendency of the Financial System; b) Stockbrokerage Houses interested in marketing participation quotas of Open Investment Funds; c) Other natural and legal persons interested in being authorized by the Superintendency to market participation quotas of Open Investment Funds; and d) Stockbrokerage Houses, as well as other natural and legal persons, authorized to market participation quotas of Open Investment Funds.

Terms
Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning:
a) Marketing Agent: A natural person authorized by the Superintendency of the Financial System who works for a Manager or a marketing entity to provide specialized advice and carry out the placement of Open Investment Funds; b) Central Bank: Central Reserve Bank of El Salvador;

c) House: A stockbrokerage house authorized and registered with the Superintendency of the Financial System; d) Participation Quotas: Participation quotas of an Open Investment Fund; e) Marketing Entity or Agent: A stockbrokerage house, as well as another legal entity authorized by the Superintendency of the Financial System, that has signed a mandate contract with a Manager for the marketing of participation quotas of Investment Funds; f) Open Fund: Open Investment Fund; g) Manager: Investment Fund Management Company; h) Member of the Financial System: Subject defined as such according to Article 7 of the Law for the Supervision and Regulation of the Financial System; i) Investor: Natural or legal person interested in acquiring participation quotas of an Investment Fund; j) Funds Law: Investment Funds Law; k) Participant: Investor in an Investment Fund; l) Registry: Public Stock Registry of the Superintendency of the Financial System; and m) Superintendency: Superintendency of the Financial System.

CHAPTER II
AUTHORIZATION AND REGISTRATION OF MARKETING ENTITIES IN THE PUBLIC REGISTRY OF THE SUPERINTENDENCY OF THE FINANCIAL SYSTEM

Requirements for stockbrokerage houses
Art. 4.- Houses interested in marketing participation quotas must submit a request to the Superintendency to modify their entry in the Registry, signed by their legal representative or attorney-in-fact, and must attach the following documents:
a) Certification of the Board of Directors' agreement of the House to provide the service of marketing participation quotas; b) Description of the business operational model corresponding to the marketing of quotas, specifically the aspects contemplated in letters a) and b) of Article 18 of these Standards. Additionally, they must submit to the Superintendency the documents referred to in letters c), d), and e) of Article 18 of these Standards, updated according to the service of marketing participation quotas. The documents mentioned in this letter must have the approval of the Board of Directors of the House; and c) Description of the computer system to be used for the registration of operations related to the marketing of participation quotas, considering what is established in Article 19 of these Standards. In the event that, according to the business operational model, the computer system for the registration of operations is provided by a Manager, this requirement will not be necessary to grant the authorization. Notwithstanding the foregoing, prior to providing the marketing service to a Manager, the House must submit to the Superintendency the certification of the Board of Directors' agreement of the Manager, stating that the services of the House will be contracted as a marketing agent for participation quotas and that, for the provision of the same, the Manager will provide the computer system for the registration of contributions and redemptions duly authorized by the Superintendency. Furthermore, in the event that the Manager provides the marketing entity with the policies and procedures for determining the investor's risk profile, the certification of the Board of Directors' agreement of the Manager must be submitted prior to the provision of the marketing service, stating that the House will be contracted for the provision of the same, and that the Manager will provide the same with said policies and procedures.

Additionally, the Houses must send to the Superintendency a Sworn Declaration signed by their legal representative or attorney-in-fact with the respective notarial authentication, in which it is indicated that said entity has submitted complete all the information requested in this article and has verified that the internal regulations, the functioning of the computer systems, and the controls defined by the entity comply with what is established in these Standards.

The request and documentation may be submitted through the means made available by the Superintendency, which may be electronic. In any case, the period referred to in the first paragraph of Article 9 of these Standards will begin to run from the next business day after the request has been submitted. (1)

Once the documentation has been submitted, the Superintendency will proceed to analyze and resolve the request, as stipulated in Article 9 of these Standards.
The notification of the resolution or any other documentation will be directed to the persons commissioned by the Houses for such effect.

The Houses must account for the operations they carry out in their function of marketing participation quotas, in accordance with what is established in the corresponding accounting regulations.

Requirements for other entities members of the financial system Art. 5.- The marketing of participation quotas may also be carried out by other entities members of the financial system, provided that their legal regime or corporate purpose does not prohibit it.

Members of the financial system interested in marketing participation quotas must submit a request for authorization to market participation quotas to the Superintendency, signed by their legal representative or attorney-in-fact, and must attach the following documents:

a) Certification of the agreement of the Administrative Body of the entity to provide the service of marketing participation quotas; b) Description of the business operational model corresponding to the marketing of participation quotas, specifically the aspects contemplated in letters a) and b) of Article 18 of these Standards. Additionally, they must submit to the Superintendency the documents referred to in letters c), d), and e) of Article 18 of these Standards, updated according to the service of marketing participation quotas. The documents mentioned in this letter must have the approval of the Administrative Body of the entity; c) Description of the computer system to be used for the registration of operations related to the marketing of participation quotas, considering what is established in Article 19 of these Standards; and d) Policies and procedures approved by the Administrative Body of the entity for the determination of the investor's profile, which must include as a minimum what is regulated in the Chapter referred to as obligations with clients and client knowledge, comprised in the "Technical Standards for the Process and Registration of Buy and Sell Orders for Securities of Stockbrokerage Houses" (NDMC -01), approved by the Technical Committee of the Central Bank.

In the event that, according to the business operational model, the information required in letters c) and d) must be provided by a Manager, these requirements will not be necessary to grant the respective authorization. Notwithstanding the foregoing, prior to providing the marketing service to a Manager, the member of the financial system must submit to the Superintendency the certification of the Board of Directors' agreement of the Manager, stating that the services of the member of the financial system will be contracted as a marketing entity for participation quotas and that, for the provision of the same, the Manager will provide the computer system for the registration of contributions and redemptions duly authorized by the Superintendency, as well as the policies and procedures for determining the investor's risk profile.

Additionally, members of the financial system must send to the Superintendency a Sworn Declaration signed by their legal representative or attorney-in-fact with the respective notarial authentication, in which it is indicated that said entity has submitted complete all the information requested in this article and has verified that the internal regulations, the functioning of the computer systems, and the controls defined by the entity comply with what is established in these Standards.

Once the documentation has been submitted, the Superintendency will proceed to analyze and resolve the request, as stipulated in Article 9 of these Standards.
The request and documentation may be submitted through the means made available by the Superintendency, which may be electronic. In any case, the period referred to in the first paragraph of Article 9 of these Standards will begin to run from the next business day after the request has been submitted. (1)

The notification of the resolution or any other documentation will be directed to the persons commissioned by the entities members of the financial system for such effect.

Members of the financial system must account for the operations they carry out in their function of marketing participation quotas, in accordance with what is established in the corresponding accounting regulations.

Art. 6.- Banks interested in marketing participation quotas must have prior approval from the Central Bank, in accordance with what is established in Article 51, letter w) of the Banks Law.

In the case of Cooperative Banks, Federations of Savings and Credit Cooperatives, and Savings and Credit Societies interested in marketing participation quotas, they must previously request a favorable opinion from the Central Bank, in accordance with what is regulated in Articles 34, letter s), 151, letter n), and 158, letter s) of the Cooperative Banks and Savings and Credit Societies Law.

A copy of the authorizations referred to in this article must be presented by the entities to the Superintendency, along with the documents accompanying the request for authorization to market participation quotas established in Article 5 of these Standards.

Requirements for legal entities not members of the financial system Art. 7.- Joint-stock companies constituted in El Salvador, other than those detailed in Article 7 of the Law for the Supervision and Regulation of the Financial System, that are interested in marketing participation quotas, must submit a request for authorization to market participation quotas to the Superintendency, signed by their legal representative or attorney-in-fact, and must attach the following documents:

a) Legible copy, notarially certified, of the testimonium of the public deed of constitution of the company, its bylaws, and the corresponding modifications of both, if applicable, duly registered or deposited in the Commerce Registry; b) Certification of the agreement of the Administrative Body of the entity to provide the service of marketing participation quotas; c) Business operational model referred to in Article 18 of these Standards, which must be approved by the Administrative Body of the entity; d) Legible photocopy of the Tax Identification Number or its Graphic Representation and legible photocopy, notarially certified, of the Taxpayer Registry Number of the company; (2)

e) Annual financial statements of the last three years of the company and their corresponding audit reports. In the event that it has been recently constituted, only the initial balance sheet duly signed and stamped by the legal representative and the accountant of the same must be presented; f) Notary-certified copy of the document accrediting the legal representative or attorney-in-fact of the company, duly registered in the Commerce Registry, as well as a notarially certified copy of their valid identity document and a copy of the Tax Identification Number or its Graphic Representation; (2) g) List of shareholders of the company, which must contain, if it is a natural person, at least the full name, age, nationality, profession or occupation, domicile, expression of the type and number of personal identity document, Tax Identification Number, if any, as well as the percentage or amount of their shareholding. If it is a legal entity, the name or corporate name, Tax Identification Number, domicile, and Taxpayer Registry Number, the latter only in the event that they are registered as such in the corresponding registry, as well as a list of their shareholders who hold more than twenty-five percent of the shareholding. The list must contain information updated to the date of submission of the request and must be duly signed by a person authorized to do so; h) Sworn Declaration of the shareholders of the company, which must be authenticated by a notary and prepared in accordance with the format established in Annex No. 1 of these Standards; i) In the event that a shareholder is a legal entity and has a participation in the company, either directly or through an intermediary, of more than fifty percent of the share capital, a notarially certified copy of its current Social Pact and the latest credential of the election of its Administrative Body must be attached; j) Credential of election of the Board of Directors and administrators of the company, duly registered in the Commerce Registry; k) List of directors, managers, and administrators of the company, containing the full name, age, nationality, profession or occupation, domicile, expression of the type and number of personal identity document, Tax Identification Number, and Taxpayer Registry Number, if they are registered as such in the respective registry; l) Legible copies of the Tax Identification Number or its Graphic Representation and legible copies, notarially certified, of the personal identity document and the Taxpayer Registry Number, if they are registered as such in the respective registry, of the directors, managers, and administrators of the company; (2) m) Copy of the curriculum vitae of the directors, managers, and administrators of the company, evidencing the academic preparation and professional experience of each of them; n) Sworn Declaration of the directors, managers, and administrators of the company, which must be authenticated by a notary and prepared in accordance with
the format established in Annex No. 2 of these Standards;

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

o) Description of the computer system to be used for the registration of operations related to the marketing of participation quotas, considering what is established in Article 19 of these Standards; p) Policies and procedures approved by the Administrative Body of the entity for the determination of the investor profile, which must include as a minimum what is regulated in the Chapter referred to as obligations with clients and client knowledge, included in the "Technical Standards for the Process and Registration of Buy and Sell Orders for Securities of Stockbrokerage Firms" (NDMC-01), approved by the Standards Committee of the Central Bank; and q) Address, telephone, email and fax, as well as the persons commissioned to receive notifications or any other documentation.

In the case that, according to the business operational model, the information required in letters o) and p) must be provided by a Manager (Gestora), these requirements will not be necessary to grant the respective authorization. Notwithstanding the above, prior to providing the marketing service to a Manager, the company must present to the Superintendence the certification of the Manager's Board of Directors agreement, in which it states that the services of the anonymous company will be contracted as an entity for the marketing of participation quotas and that, for the provision of the same, the Manager will provide the computer system for the registration of contributions and redemptions duly authorized by the Superintendence, as well as the policies and procedures for the determination of the investor's risk profile.

Additionally, the companies must send to the Superintendence a Sworn Declaration signed by their legal representative or attorney with the respective notarial authentication, in which it is indicated that said company has completely presented all the information requested in this article and has verified that the internal regulations, the functioning of the computer systems, and the controls defined by the company comply with what is established in these Standards.

Once the documentation is presented, the Superintendence will proceed to analyze and resolve the request, as stipulated in Article 9 of these Standards.
The request and documentation may be presented through the means made available by the Superintendence, which may be electronic. In any case, the period referred to in the first paragraph of Article 9 of these Standards will begin to run from the next business day after the request has been presented. (1)

The companies referred to in this article may be authorized by the Superintendence to carry out the marketing of participation quotas, provided that their legal nature or purpose does not prevent them from performing such function and the activity they carry out or their legal situation does not put at risk the reputation of a Manager.

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

Additionally, the administration of the company must be under the regime of a Board of Directors and its members must have experience or training in financial matters. The shareholders, directors, managers, and administrators of these companies must meet the requirements established in Article 8 of these Standards.

Art. 8.- For the anonymous companies referred to in the previous article to be authorized by the Superintendence to market participation quotas, the members of their Board of Directors, managers, and administrators must comply, in addition to the requirements established in the Commercial Code, with the following:
a) Be over twenty-five years of age; and b) Demonstrate knowledge in financial or marketing matters.

The legal representative of the aforementioned company must be domiciled in the country.
Additionally, for the aforementioned company to be authorized as a marketing entity, its shareholders, directors, managers, or administrators must meet at minimum the following requirements:
i. Not having been judicially qualified as responsible for a negligent or fraudulent bankruptcy;
ii. Not having been administratively or judicially sanctioned for their participation in a serious violation of laws and norms of a financial nature in the national jurisdiction or abroad;
iii. Not having been convicted by a final judgment in the country or abroad for having committed or participated fraudulently in the commission of any crime; and
iv. That their participation in activities related to drug trafficking and related crimes, money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction has not been judicially proven, both in the national jurisdiction and abroad. (3)

Prior to contracting the service of marketing of participation quotas with a company that is not part of the financial system and during the validity of the contract, the Manager will be responsible for verifying by the means it deems appropriate that the company, its shareholders, directors, managers, and administrators comply with the requirements established in this article.

For this purpose, the company must present annually to the Manager to which it provides the marketing service, sworn declarations of its shareholders, directors, managers, or administrators, according to what is established in Annexes No. 1 and 2 of these Standards.

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

The Administrative Body and the administrators of the non-financial system company that is authorized as a marketer will be responsible for having the necessary information that allows them to evaluate the functioning and efficiency of the internal control system, as well as to examine the compliance with the internal procedures and policies for marketing operations that are carried out, their documentation, and registration.

Authorization Procedure for Marketing Entities Art. 9.- Upon receipt of the authorization request for marketing entities, in accordance with what is established in Articles 4, 5, 6, and 7 of these Standards, as applicable, the Superintendence will proceed to verify compliance with the requirements defined in the Investment Funds Law and in these Standards, as well as the review of the computer systems that will be used, having a period of up to twenty business days for the authorization or denial of the authorization of an entity for the marketing of participation quotas. (1)

If the request is not accompanied by the complete and duly formatted information detailed in Articles 4, 5, 6, and 7 of these Standards, as applicable, the Superintendence, due to the lack of necessary requirements, may require the requesting entity to present the missing documents within a period of ten business days counted from the day following the notification, a period that may be extended at the request of said entity when there are reasons justifying it. (1)

The Superintendence in the same notice will indicate to the entity that if it does not complete the information within the aforementioned period, it will proceed without further procedure to archive the request, leaving it free to present a new request. (1)

If after the analysis of the documentation presented in accordance with Articles 4, 5, 6, and 7 of these Standards, as applicable, the Superintendence has observations or when the documentation or information presented is not sufficient to establish the facts or information intended to be accredited; the Superintendence will notify the respective entity once to remedy the deficiencies communicated or present additional documentation or information requested. (1)

The requesting entity will have a maximum period of ten business days counted from the day following the notification, to resolve the observations or present the additional information required by the Superintendence. (1)

The Superintendence may, through a reasoned resolution, extend by up to another ten business days, the period indicated in the previous paragraph, when the nature of the observations or notified deficiencies so require. (1)

Extension Period (1)

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

Art. 9-A.- The requesting entity may present to the Superintendence a request for extension of the period indicated in the fifth paragraph of Article 9 of these Standards, before said period ends, must express the grounds on which it is based and propose, if applicable, the pertinent proof. (1) The extension period may not exceed ten business days and will begin from the next business day following the expiration date of the original period. (1)

Suspension of the Period (1)
Art. 9-B.- The period of twenty business days indicated in the first paragraph of Article 9 of these Standards, will be suspended for the days that elapse between the notification of the request for information or documentation referred to in the second and fifth paragraphs of Article 9 of these Standards, until the observations required by the Superintendence are remedied. (1)

Once the documents are presented in due form, the Superintendence will proceed to respond to the corresponding authorization request. (1)

Art. 10.- The Superintendence will proceed to notify the entity of the resolution in which it authorizes or denies the request, within a maximum period of three business days from the date the resolution is issued. (1) In the case that the Superintendence issues a favorable resolution for a Stockbrokerage Firm or another entity that is part of the financial system, the Superintendence will note this fact in the corresponding registry entry.

Update of Information in the Superintendence Registry Art. 11.- Marketing entities must send to the Superintendence any information related to changes in the requirements and documents that were considered for the analysis and resolution of their request, no later than within thirty days subsequent to the event that motivates it. When a marketing entity appoints a new legal representative, it will proceed to update its information no later than three business days after the event occurred. The marketing entity must also send to the Superintendence a certified copy of the Legal Representation credential duly registered in the Commerce Registry, fifteen business days following the said registration.

CHAPTER III
CONTRACTING OF THE PARTICIPATION QUOTA MARKETING SERVICE

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

On the participation quota marketing service
Art. 12.- The participation quota marketing service covers the promotion, placement, and redemption of participation quotas of Open Funds.
The Board of Directors of the Manager must identify the Investment Fund or Funds administered that will be marketed through an agent, the profile and criteria that an entity must meet to be contracted as its marketer, and the commissions to be paid to said entities. Likewise, it must establish the manner in which the risks associated with the contracting of this service will be managed, especially financial and operational risks, which include technological risks, legal risks, those related to the prevention, detection, and control of money laundering, terrorist financing, financing of the proliferation of weapons of mass destruction, and reputational risk. (3)

Entities contracted by a Manager for the marketing of participation quotas will constitute its agents, who will provide the participation quota marketing service as if it were carried out by the Manager that contracted their services. Marketing entities must comply with the provisions related to the marketing of participation quotas that are mandatory for the Manager and are contemplated in the Funds Law and in the different Technical Standards approved by the Standards Committee of the Central Bank.

The Administrative Body of the marketing entity must approve the necessary procedures to comply with the guidelines issued by the Manager that contracted their services, related to risk management in the marketing of participation quotas.
The commission to be paid to the marketing entity must be included in the commission charged by the Manager for the administration of the Fund, according to what is established in the Fund Regulations.

Contract for Marketing
Art. 13.- The contracting of the participation quota marketing service must be approved by the Board of Directors of the Manager or whom it delegates, for which it must sign a mandate contract with the marketing entity that provides the referred service. Through this contract, the Manager must expressly empower the entity to represent and bind it in everything related to the marketing of participation quotas, within the limits of its mandate. The Manager will be responsible for contracting companies that have the capital and infrastructure to market participation quotas, in order to guarantee the continuity of operations, fulfill commitments, and face the risks to which this business is exposed.

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

Mandate contracts must comply with what is established in the legal and regulatory framework related to service contracts, according to the "Technical Standards for the Authorization of Constitution, Start of Operations, Registration, and Management of Operations of Investment Fund Managers" (NDMC-02), approved by the Standards Committee of the Central Bank. The marketing contract must consider the following minimum content:
a) Reference to the authorization issued by the Superintendence for the marketing entity; b) Express indication that the marketing entity acts before investors and participants on behalf of and under the responsibility of the Manager; c) Clause reflecting that the mandate cannot be delegated to a third party; d) Operations included in the mandate. In the case that the Internal Regulations of the Open Fund to be marketed so provides, it must include the possibility that the agent can receive redemption requests for participation quotas and deliver payment to participants in accordance with the Internal Regulations of each Fund and these Standards; e) Obligations, prohibitions, and codes of conduct that the marketing entity must observe, including those stipulated in these Standards and those required for the Manager on this matter in other Technical Standards; f) Obligations of the Manager with the marketing entity, including those stipulated in these Standards; g) Security measures and availability of human resources that the marketing entity must maintain to provide the services included in its mandate; h) Policies, mechanisms, and control measures that the marketing entity must implement for the prevention, detection, and control of money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction; (3) i) Schedule and manner in which the agent entity will provide daily to the Manager through electronic means, information on participants and operations carried out, including that necessary to keep the participant registry updated; j) Procedure that the agent must follow to transfer to the Manager in complete form, the original files of participants with whom participation quotas have been placed, establishing a specific period for their transmission; k) Information security provisions to guarantee the integrity, transfer, and availability of information; l) Provisions to ensure that marketing entities keep strict secrecy and confidentiality regarding the information to which they have access, by reason of the provision of their services, especially personal data and operations carried out by participants; m) Procedure that the agent must follow in the case that it receives complaints from participants, including the obligation to inform them about the alternative of going directly to the Manager;

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

n) Procedure that will be used for the resolution of conflicts between the Manager and the marketing entity; o) Procedure that will be used to communicate to the Manager that the marketing entity, its shareholders, directors, managers, and administrators have failed to comply with any of the requirements established in these Standards or have incurred any of the incapacities established in the laws governing them; p) Clauses that facilitate an adequate review, by the Manager or the Superintendence, of the operations and services provided by the marketing entity; q) Remuneration or commission to be paid to the marketing entity; r) Term of the contract; and s) Clauses of suspension and termination of the contract, as well as their legal consequences.

The models of mandate contracts for the marketing of participation quotas must be previously sent to the Superintendence for review, by virtue of what is established in Article 30 of the Funds Law.
The Manager must inform the Superintendence, in the first seven business days of each month, the contracts with new agents of the previous month indicating: name of the contracted entity, date of contracting, and date of start of service provision.
The Manager must verify that the agent is acting in accordance with what was agreed in the contract and that the operational capacity of the marketing entity on which the signing of the contract was based has not deteriorated.

In the event that the Manager has knowledge that one of its agents has ceased to comply with any of its obligations considered in the provision of the service to the detriment of the participants or the Fund subject to marketing, it may terminate the contract, communicating it to the Superintendence within a maximum period of five business days after having terminated it. The Manager cannot force its agents to sign exclusivity contracts for the marketing of participation quotas. No entity may market participation quotas without having been previously authorized by the Superintendence, having signed a mandate contract with a Manager to provide that service, and having a contribution and redemption system for the registration of marketing operations duly authorized, which complies with the requirements established in Article 19 of these Standards.

Agents of Two or More Managers
Art. 14.- In the case that a marketing entity has been contracted by a Manager and there are other Managers interested in contracting the same entity

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

marketing entity, the latter must verify the technical and operational capacity of the marketing entity to handle the additional volume of operations and services prior to signing the respective contract, and must show the Superintendency, when it so requires, the result of the analysis on the operational capacity of the marketing entity on which the signing of the additional contract was based.

Additionally, in the event that the marketing entity has shareholders, directors and/or administrators of a Manager, it must inform the other Managers with which it contracts prior to the signing of the respective contracts.

Responsibilities of the Manager that contracts the marketing of participation quotas

Art. 15.- The quality of the contracted service is the responsibility of the Manager, which will respond to third parties as if it had carried them out. In the event that the Manager decides to carry out the marketing of participation quotas through an agent, the Manager will be responsible for the following:

a) Ensure that the agent has the capital and physical, technical and human resources infrastructure for the provision of the agreed services, verifying for this purpose the technical and operational capacity of the agent to handle the volume of operations and services agreed;

b) Ensure that the Marketing Agents who work for its agents are trained, in accordance with what is established in article 39 of these Standards;

c) Have policies for the management of risks associated with the marketing of the Open Funds it administers and ensure that its agent carries out the management of the same;

d) Monitor compliance with the Special Law for the Prevention, Control and Sanction of Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction by its agents, without prejudice to the obligations that correspond to it in accordance with what is established in the “Technical Standards for the Authorization, Registration and Operation of Investment Fund Managers” (NDMC -06), approved by the Standards Committee of the Central Bank; (3)

e) Keep the original files of the participants who have acquired participation quotas through its agents, which it must keep complete and updated;

f) Verify that the marketing entity made the corresponding payment in a timely and proper manner, in the event that the Internal Regulations of the Open Fund contemplate the possibility that the agent may receive requests for redemption of participation quotas and deliver the payment to the participants;

g) Establish the mechanisms and procedures to attend to complaints from investors and participants derived from the operations carried out through its agents, for which it must specify the official means of receiving such complaints and resolve them within a reasonable time. Such procedure must incorporate internal controls on the attended queries and responses provided;

h) Provide its agents with a contact telephone number or other means of electronic communication through which they can maintain permanent communication, in order to facilitate the solution of any concern or problem that arises in the marketing of participation quotas;

i) Publish on its website a list of its marketing entities, detailing information on address, telephone number and electronic address;

j) Make available to the Superintendency all the information it requires for the execution of its surveillance and supervision work on the service of marketing of participation quotas, including complete and updated information on its agents and on the contracts celebrated with them, providing all the necessary collaboration either in its field visits or in extra-situ monitoring, ensuring that its agents send the corresponding information in a timely manner;

The verification of the provision of the marketing service will fall on the Manager. Nevertheless, the Superintendency may carry out supervision directly in the agent entity; and

k) Keep strict reserve and confidentiality on the information to which it has access from each marketing entity with which it establishes a relationship.

Responsibilities of the marketing entities

Art. 16.- The marketing entities will be obliged to comply with the following aspects:

a) The obligations undertaken in the mandate contract with the Manager for the marketing of participation quotas;

b) Deliver in a timely and truthful manner to investors and participants all the necessary information for the promotion, placement and redemption of participation quotas;

c) Offer investors the Open Funds suitable for their risk profile, taking into account the profile of the investor to which the Fund is directed as defined by the Manager;

d) Indicate to investors the bank account of the Open Fund in which the payment of participation quotas must be made;

e) Maintain in physical or electronic media a complete and updated copy of the participants' files;

f) Inform the Manager and the Superintendency, at least one month in advance, about the opening or closing of new offices and branches;

g) Make available to the Superintendency all the information it requires for the execution of its surveillance and supervision work on the service of marketing of participation quotas; and

h) Keep available and deliver to participants the updated version of the prospectuses and Regulations of the Funds they market.

Acts not permitted to marketing entities

Art. 17.- The marketing entities must abstain from the following:

a) Delegate the mandate received from the Manager to a third party, except in the case of its Marketing Agents;

b) Carry out on behalf of the Manager operations and services different from those agreed or in a manner different from that defined in the contract;

c) Carry out operations on behalf of the Manager outside the limits established by it;

d) Condition the carrying out of marketing operations of participation quotas to the acquisition of a product or service own to the commercial activity it exercises;

e) Influence the investor's preference towards a certain Fund by virtue of commissions or remuneration paid by a Manager;

f) Receive from participants cash payment coming from the placement of participation quotas and subsequent contributions, except when it comes to banking institutions;

g) Deliver cash to participants to pay for the redemption of participation quotas;

h) Apply to participants any type of charge other than that established by the Manager in the Internal Regulations of the respective Open Fund; and

i) Carry out Marketing Agent activities by persons not authorized by the Superintendency to carry out this type of activities.

Business operational model

Art. 18.- For the marketing of participation quotas, the marketing entity must maintain an updated document that reflects its business operational model, which must contain at least the following:

a) Process indicating the way in which the different Open Funds are marketed, including the guidelines applied for the promotion, placement and redemption of participation quotas;

b) Internal Conduct Standards for the marketing of participation quotas, including policies related to ethical standards, management of conflicts of interest and proper use of information, considering the requirements established for the Manager in the Technical Standards issued by the Central Bank for such effect;

c) Procedures to verify compliance with what is provided in the Special Law for the Prevention, Control and Sanction of Money Laundering, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction; (3)

d) Mechanisms to guarantee attention to participants, including the means to provide information and the formal service for the attention of complaints of conformity to letter k) of article 19 of the Consumer Protection Law. Additionally, the marketing entity must observe the requirements on investor attention established for the Manager in the corresponding Technical Standards, including the establishment of internal controls on the attended queries and responses provided; and

e) Information security measures, defining the necessary controls to guarantee the availability, integrity, confidentiality and security of the information and the computer system.

Computer system for the registration of contributions and redemptions

Art. 19.- The marketing entity must have a computer system that credibly accredits the marketing, through which it controls, safeguards the rights and registers the requests for contributions and redemptions of participation quotas of the participants, automatically assigning a sequential number for each of the requests received. In said system, the requests received from participants must be entered and registered immediately and in chronological order.

Likewise, said system must allow the verification of the aforementioned requests and comply with what is established in the “Technical Standards for the Authorization of Constitution, Start of Operations, Registration and Management of Operations of Investment Fund Managers” (NDMC -02), approved by the Standards Committee of the Central Bank, with respect to contributions and redemption of quotas.

This system must contain at least the following information:

a) Sequential number: number assigned sequentially and automatically by the system according to the chronological receipt of the operations;

b) Date and time of the request: specification of the date and time in which the request for placement or redemption of participation quotas is entered;

c) Fund: name of the Open Fund from which the participation quotas are being marketed;

d) Manager: name of the Manager that administers the Open Fund from which the participation quotas are being marketed;

e) Name of the participant: identification of the natural or legal person, in whose name the contribution or redemption of participation quotas will be carried out;

f) Participant identification code: code assigned by the Manager in accordance with its internal controls;

g) Type of operation: specification of whether the operation is a placement or a redemption of participation quotas;

h) Status of the request: paid or pending payment, specifying the reasons why it is in process if applicable;

i) Form in which the contribution or redemption payment was made: electronic transfer, account credit or check;

j) Date and time of the application of the contribution or redemption operation;

k) Type of currency: identification of the type of currency of the transaction;

l) Amount: specification of the total amount of the operation;

m) Value and number of quotas: Indicate the value and the number of quotas that represents the investment;

n) Marketing agent: identification of the agent carrying out the marketing function, indicating its name and authorization code assigned by the Superintendency;

o) Current commissions and taxes to be charged: commissions and respective taxes if applicable; and

p) Observations: detail of the situations that arise in the receipt of the requests for contributions and redemptions requested by the participant when applicable.

The computer system must have mechanisms for security, integrity and consistency. The entity must have mechanisms for backup and recovery of information in case of fortuitous event or force majeure, as well as contingency plans that allow ensuring the capacity and continuity of the system.

This information must be sent to the Manager online or in batches, through an automated system that guarantees the security, integrity, confidentiality and availability of information. In the case of batch transmission, this must be carried out at least twice during the daily working day.

Promotion of Open Investment Funds

Art. 20.- For the purposes of these Standards, the promotion of Open Funds will be understood as the activities developed to inform one or more investors about the characteristics of the Open Funds subject to marketing.

The Manager must ensure that its agents place a notice in their facilities, with typography visible to the naked eye, containing the following information:

a) A clarification indicating that the marketing entity acts as an agent of the Manager;

b) Statement that the Manager is fully responsible to the participants for the operations and services provided through the marketing entity;

c) List of the operations and services offered through the marketing entity;

d) Responsible unit and way to contact the Manager to present a complaint; and

e) Exhibition of the following legend: “The amounts of money received as contributions for an Investment Fund are investments at the account and risk of the investors, they are not bank deposits and do not have the guarantee of the Deposit Guarantee Institute”. This legend must be written in a considerable font size and placed in a prominent place, so that it is easily visible to the public.

Marketing entities that are agents of two or more Managers must comply with the identification notice for each of the aforementioned Managers, being able to publish in a single notice the information that is common.

The information referred to in letters a), b) and d) of this article must be indicated on all stationery directed to participants issued by the marketing entity.

It is the responsibility of the marketing entity to explain to the potential participant about the characteristics and risks of this form of investment. In addition, they must inform the investor about the functioning and characteristics of the Open Funds, in accordance with what is established in the “Technical Standards for the Authorization, Registration and Operation of Investment Funds” (NDMC -06), approved by the Standards Committee of the Central Bank.

In the event that the marketing entity uses promotional means other than the Internal Regulations of the Open Fund, the Prospectus or its extracts, the referred promotion must correspond with the information contained in said documents.

Marketing entities must keep in their files, available to the Superintendency, a digital copy of all written promotion carried out in the last three years.

Likewise, marketing entities must keep in their offices or on their websites complete and updated information on the Financial Statements and investments of the Open Funds they market, which may be delivered upon request of the participants at the time of offering them the Open Funds, either by physical or electronic means.

Placement of participation quotas

Art. 21.- For the placement of participation quotas, the marketing entity must comply with the regulations for Managers on this matter in the “Technical Standards for the Authorization, Registration and Operation of Investment Funds” (NDMC -06), approved by the Standards Committee of the Central Bank, as well as what is established in the Internal Regulations of the respective Open Fund.

The marketing entity must consider the risk profile of the potential participant and their investment needs.

The entity must offer the investor all the Open Funds it is authorized to market and that agree with said profile, informing them about their characteristics.

The contracts signed with participants for the acquisition of participation quotas must indicate the data of the marketing entity with which the operation is carried out, stating that it acts on behalf of the Manager and that it is authorized by the Superintendency for this purpose.

The marketing entity is responsible for collecting all the necessary documents for the formation of the participants' files in accordance with the “Technical Standards for the Authorization, Registration and Operation of Investment Funds” (NDMC -06), approved by the Standards Committee of the Central Bank, sending the referred files to the Manager and keeping a complete copy of them for its internal files, which may be by physical or digital means.

Contributions coming from the placement of participation quotas must be made by the participant by means of check, account credit or transfer to the bank account of the respective Open Fund.

Redemption of participation quotas

Art. 22.- In the event that the Internal Regulations of the Open Fund and the mandate contract so contemplate, the agents of the Manager may receive requests for redemption of participation quotas and deliver the payment to the participants. The agent will register the redemption requests by their order of entry, indicating the date and time of each request and the corresponding payment.

The payment of redemptions must be made in accordance with the conditions and term established in the Internal Regulations of each Open Fund. For these purposes, the payment must be made only by means of a check issued by the Manager, electronic transfer or credit to an account of the participant charged directly to the account of the Open Fund. When it comes to checks, the Manager will be responsible for verifying that the marketing entity delivered it to the participants in a timely and proper manner. For these purposes, the marketing entity will keep a detail of the checks delivered specifying the client's name, amount of the check, date of delivery and the corresponding signature.

Managers must define in the mandate contract the aspects that are necessary to coordinate the payment of redemptions through an agent, including the payment of redemptions that represent significant amounts of the equity of the respective Open Fund.

In any case, participants may directly request the redemption of their participation quotas from the Manager, regardless of whether they have signed the participation quota contract through an agent.

Receipt of the operation carried out

Art. 23.- The requests must be entered by the marketing entity in the respective computer system. Once the contribution or redemption has been executed, a receipt of the operation carried out will be delivered or sent to the participant, which must

be issued by the Manager and specify at minimum, the date and time of the participant's instruction, the Open Fund in which it invests or from which it redeems, the invested or redeemed amount, the value and number of assigned or redeemed units, the amount and percentage of commissions when applicable as defined in the Internal Regulations. (1)

Marketing Entity as a Participant in an Open Fund Art. 24.- The operations carried out by the marketing entity as a participant in an Open Fund must be reported by the Manager to the Superintendence no later than the next business day following their execution, detailing the following information:
a) Name of the Open Fund and of the Manager with whom the operation is carried out; b) Date of the operation; c) Type of operation, indicating whether it is a contribution or redemption of participation units; d) Specification of the amount of the operation; and e) Value and number of participation units representing the operation.

The Superintendence will send the technical details related to the sending of the information requested in this article, which will be communicated within a maximum period of thirty days following the entry into force of these Standards. The information requirements will be limited to the collection of information in accordance with the regulation established in these Standards.

Marketing of participation units abroad
Art. 25.- When a Manager is interested in marketing abroad participation units of Open Funds administered by it, it must present to the Superintendence the contract to be signed with the foreign marketing entity, which must contain at minimum the aspects established in article 13 of these Standards, with the exception of letter p), and must additionally include a clause that facilitates the review by the Manager of the services provided by the foreign marketing entity.

In all cases, the quality of the contracted service is the responsibility of the Manager, therefore it must ensure that the foreign entity providing the participation unit marketing service has the appropriate suitability and solvency; has adequate physical, technical, and human resources infrastructure; and complies with the regulatory provisions of the country where the marketing of participation units will take place.

The Manager must maintain a physical or digital copy of the files of participants who have acquired participation units abroad; likewise, it must ensure that the foreign marketing entity implements the necessary procedures to profile investor risk and to verify the source of funds derived from the placement of participation units, in compliance with

Termination of contract with an agent
Art. 26.- The termination of the marketing contract between a Manager and its agent implies a modification to the Internal Regulations of the Open Fund and the respective Prospectus, therefore the Manager must follow the corresponding procedure before the Superintendence, in accordance with what is established in the “Technical Standards for the Authorization, Registration and Operation of Investment Funds” (NDMC-06), approved by the Standards Committee of the Central Bank.

The Manager will be responsible for informing, no later than the next business day after the event occurred, about the termination of contracts with its agents, to the Superintendence and through its website; likewise, it must inform its participants in correspondence within a maximum period of five business days, eliminating the data of the marketing entity from advertising and stationery directed to the public.

CHAPTER IV
AUTHORIZATION OF NATURAL PERSONS AS MARKETING AGENTS FOR PARTICIPATION UNITS

On marketing agents
Art. 27.- For a natural person to provide services as a marketing agent for participation units, it must be previously authorized by the Superintendence.
The Manager or marketing entity, as applicable, may not carry out marketing through persons who are not authorized by the Superintendence as marketing agents.
No marketing agent may exercise their functions on their own behalf, nor while they do not have a labor contract signed with a Manager or with a marketing entity.

Authorization requirements
Art. 28.- For a person to be authorized by the Superintendence as a marketing agent, they must meet the following requirements:
a) Be of legal age; b) Hold a university degree registered or incorporated in the Ministry of Education and have at least one year of experience in stock market and financial matters. In the case of not having a university degree, they must prove at least three years of experience in such matters; c) Have knowledge in stock market and financial matters, such as:

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Tel. (503) 2281-8000 www.bcr.gob.sv
i. Financial operations and instruments;
ii. Stock markets; and
iii. Characteristics, peculiarities, and risks of financial instruments.
d) Not have been judicially qualified as responsible for a negligent or fraudulent bankruptcy; e) Not have been administratively or judicially sanctioned for participation in a serious violation of laws and norms of a financial nature in the national jurisdiction or abroad; f) Not have been convicted by a final judgment in the country or abroad for having committed or participated fraudulently in the commission of any crime; and g) That their participation in activities related to drug trafficking and related crimes, money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction has not been judicially proven, in the national jurisdiction or abroad. (3)

Content of the application
Art. 29.- The natural person wishing to obtain authorization as a marketing agent must present to the Superintendence an application with their personal data, including full name, age, nationality, profession or occupation, address, type and number of identity document, and Tax Identification Number. Likewise, they must indicate the address, telephone, email, and fax to receive notifications or any other documentation.

Additionally, in the case of Stock Brokerage Agents, they must specify in the application the registry seat number granted by the Superintendence.

The Manager or marketing entity interested in requesting authorization from the Superintendence for its personnel to act as marketing agents must present to the Superintendence an application signed by its legal representative or attorney-in-fact, which must contain the information required in this article, as well as the date on which each person for whom authorization is requested began the labor relationship with the entity.

Notwithstanding, if the application referred to in the preceding paragraph is presented for a group of persons, the Superintendence will proceed to analyze and resolve the application for each of the persons, as stipulated in article 9 of these Standards.

Documents that must be attached to the application Art. 30.- The authorization application must be accompanied by the following information from the interested party:

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Tel. (503) 2281-8000 www.bcr.gob.sv a) Notarially certified copy of the Unique Identity Document (DUI) in the case of Salvadorans or a notarially certified copy of the Residence Card or other document that proves their nationality, in the case of foreigners; b) Copy of the Tax Identification Number or its Graphic Representation; (2) c) Curriculum vitae, accompanied by the necessary documents to prove their experience, academic degree or level of education, as well as training received in stock market and financial matters if any; and d) Sworn declaration authenticated by a notary and prepared in accordance with the format established in Annex No. 3 of these Standards.

Stock Brokerage Agents must attach to the application the documents established in this article, only if these have undergone changes with respect to those previously presented to the Superintendence.

The application and documentation may be presented through the means made available by the Superintendence, which may be electronic. In any case, the period referred to in the first paragraph of article 31 of these Standards will begin to run from the next business day after the application has been presented. (1)

Resolution of the marketing agent authorization application (1) Art. 31.- Upon receiving the authorization application as a marketing agent, in accordance with what is established in articles 29 and 30 of these Standards, the Superintendence will proceed to verify compliance with the requirements defined in the Investment Funds Law and in these Standards, having up to fifteen business days for the authorization or denial of the marketing agent. (1)

If the application does not come accompanied by the complete and proper information detailed in articles 28, 29, and 30 of these Standards, the Superintendence, due to the lack of necessary requirements, may require the applicant to present the missing documents within a period of ten business days counted from the day following the notification, a period that may be extended at the request of the applicant when there are reasons justifying it. (1)

The Superintendence in the same notice will indicate to the applicant that if they do not complete the information within the aforementioned period, it will proceed without further procedure to archive the application, leaving them free to present a new application. (1)

If after the analysis of the documentation presented in accordance with articles 28, 29, and 30 of these Standards, the Superintendence has observations or when the documentation or information presented is not sufficient to establish the facts or information intended to be proven; the Superintendence will notify the respective applicant only once to remedy the deficiencies communicated or present additional documentation or information requested. (1)

The Superintendence may, through a reasoned resolution, extend by up to another ten business days, the period indicated in the preceding paragraph, when the nature of the observations or notified deficiencies so requires. (1)

Extension period (1)
Art. 31-A.- The applicant may present to the Superintendence a request for extension of the period indicated in the fifth paragraph of article 31 of these Standards, before the expiration of said period, expressing the grounds for the request and proposing, if applicable, the relevant proof. (1) The extension period may not exceed 10 business days and will start from the next business day following the expiration date of the original period. (1)

Suspension of the period (1)
Art. 31-B.- The fifteen business day period indicated in the first paragraph of article 31 of these Standards, will be suspended for the days that elapse between the notification of the request for information or documentation referred to in the second and fifth paragraphs of article 31 of these Standards, until the observations required by the Superintendence are remedied. (1)

Once the documents are presented in proper form, the Superintendence will proceed to respond to the corresponding authorization application. (1)

In case the Superintendence issues a favorable authorization resolution, it will be communicated to the authorized marketing agent within a maximum period of three business days after approval. (1)

In the case of authorization for a Stock Brokerage Agent, the Superintendence will note this fact in the corresponding registry seat. (1)

Validity of the authorization
Art. 32.- The authorization issued by the Superintendence to operate as a marketing agent for participation units will be for an indefinite period.

The aforementioned authorization will remain active as long as the person has a labor contract signed with a Manager or with a marketing entity, a fact that must be indicated in the resolution issued by the Superintendence.

Hiring of a marketing agent

The Manager or marketing entity, as applicable, may not hire as a marketing agent the directors, shareholders, or employees of another Manager or of another marketing entity, to work simultaneously in it.

Responsibility of marketing agents
Art. 34.- Marketing agents will act in the name and on behalf of the entity that hires them and under the responsibility of this entity.

Without prejudice to what is established in the preceding paragraph, marketing agents are responsible for explaining to the investor the characteristics of this investment form, avoiding making statements that could lead to false, misleading, or inaccurate appraisals about the characteristics of the Open Fund, indicating that the originally contributed amount may increase or decrease depending on the financial result of the Open Fund. Furthermore, they must inform the investor about the operation and characteristics of Open Funds in accordance with what is established in the “Technical Standards for the Authorization, Registration and Operation of Investment Funds” (NDMC-06), approved by the Standards Committee of the Central Bank.

Issuance of credential
Art. 35.- The Manager or marketing entity, as applicable, must issue a credential to their authorized agents to market participation units, which the marketing agent must wear visibly to the public. Such credential must contain the following data:
a) Name of the authorized person; b) Name of the entity for which they work; c) Date of authorization by the Superintendence; and d) Date of issuance of the credential.

Such credential must be signed by the legal representative or attorney-in-fact of the entity for which the marketing agent works.

Registry of marketing agents
Art. 36.- The Manager must keep an updated registry of the marketing agents who work directly for it or for its agents.

This registry must be available to the Superintendence and contain the general data of the marketing agents, including at minimum the information required in the “Technical Standards for the Authorization of Constitution, Start of Operations, Registration and Management of Operations of Investment Fund Managers” (NDMC-02), approved by the Standards Committee of the Central Bank.

In the case where the marketing agent works for an agent, the registry must additionally indicate the name of the corresponding marketing entity.

Update of information
Art. 37.- The Manager, the marketing entity, or the marketing agent, as applicable, will communicate to the Superintendence any change related to the information presented for the authorization application of a marketing agent, no later than within five business days following the occurrence of the change, sending the corresponding documentation within a maximum period of thirty days subsequent to such communication. This period may be extendable in justified cases, at the request of the Manager or marketing entity.

In the case where the agent works for a marketing entity, the latter must additionally communicate to the Manager that has hired its services about the change occurred, attending the periods considered in the preceding paragraph.

Manual for the marketing of participation units Art. 38.- In order to facilitate marketing agents in the execution of participation unit marketing activities, the Manager or the marketing entity must make available to the marketing agents a manual that must contain at minimum the following:
a) Basic concepts and description of operations, as well as the services they can perform; b) Procedures they will use for the promotion, placement, and redemption of participation units, considering the provisions of these Standards and what is required for the Manager in other Technical Standards; c) Procedure they will use for the identification, registration of participants, registration of operations, and what is related to compliance with the Special Law for the Prevention, Control and Sanction of Money Laundering, Terrorist Financing, and Financing of the Proliferation of Weapons of Mass Destruction; (3) d) Procedure for profiling investor risk; and e) Information and documents that must be delivered or received from investors and participants for the marketing of participation units.

The Manager or the marketing entity, as applicable, must ensure that their marketing agents comply with what is defined in the aforementioned Manual.

Training of marketing agents
Art. 39.- The Manager or marketing entity must design and implement each year a training plan directed at its marketing agents; likewise, the Manager must require that personnel who work for its agents and who are responsible for marketing the participation units of the Open Funds they administer, are properly trained.

In any case, marketing agents must prove a minimum of forty hours of training every two years in matters related to Open Funds, including aspects such as applicable regulation, characteristics of the financial products they offer, investor risk profiling, customer service, consumer protection, information transparency, prevention of money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction, and new trends regarding this figure in stock markets, with marketing agents maintaining the supporting documentation that proves compliance with them. (3)

The training provided to personnel must be documented, which will be available to the Superintendence at all times.

Marketing agent as a participant in an Open Fund Art. 40.- The marketing agent who is interested in acquiring participation units of an Open Fund may not carry out marketing operations for themselves, but must do so through another marketing agent, for which the interested agent must inform previously and in writing to the general manager, attorney-in-fact, or legal representative of the entity for which they work.

When operations are carried out through another marketing agent who works for the same entity where the interested party works, they must have prior written authorization from the general manager, attorney-in-fact, or legal representative of said entity.

In any case, the operations carried out for a marketing agent in their capacity as a participant must be reported by the entity for which they work and by physical or electronic means to the Superintendence no later than the next business day after they have been carried out.

Resignation and change of labor relationship of a marketing agent Art. 41.- Attending the periods established in article 37 of these Standards, the Manager or the marketing entity, as applicable, must inform the Superintendence when a marketing agent ceases to work for it.

If the withdrawal is due to a change of Manager or marketing entity, the new hiring entity will be obligated to inform this situation to the Superintendence, no later than the day of the agent's start of work, sending no later than within a maximum period of thirty days subsequent, by note signed by legal representative

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Tel. (503) 2281-8000 www.bcr.gob.sv

or agent of the new contracting entity, the information detailed below:
a) The updated documents relating to letters c) and d) of Article 30 of these Standards; and b) Copy of documents required in letters a) and b) of Article 30 of these Standards, in case they have undergone modification with respect to those initially presented to the Superintendency.

In the event that a commercial agent is contracted by a Manager or commercializing entity and this agent has not provided its services as a commercial agent for one year or more, the contracting entity shall proceed to comply with what is established in Articles 28, 29 and 30 of these Standards.

Once the information is presented in proper form and complete, the Superintendency shall proceed to revoke the authorization granted as a commercial agent (1).

CHAPTER V
OTHER PROVISIONS AND VALIDITY

Filing of proceedings initiated by authorization request Art. 42.- The Superintendency shall proceed without further formality to file the proceedings initiated in the authorization procedure detailed in these Standards, when the following situations occur:
a) The entity or natural person has not presented the required information within the stipulated period in accordance with what is established in these Standards; and b) The entity or natural person presents a letter to the Superintendency, informing the desire to withdraw the request, at any time.

In any case, the interested parties will maintain their right to present a new request to the Superintendency, which will give rise to a new procedure.

Publication of authorized marketers
Art. 43.- The Superintendency shall keep updated on its website the details of the entities and persons authorized as marketers of participation quotas, detailing at minimum the following information:
a) Name of the commercializing entity or commercial agent. In the case of the commercial agent, it must detail the name of the entity for which it works; and b) Date and session number of the Council in which it obtained the authorization from the Superintendency. In the case of the commercial agent, it must indicate the status of the authorization, declaring that it is active in the case that the agent is working for a Manager or a commercializing entity, or inactive otherwise.

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Tel. (503) 2281-8000 www.bcr.gob.sv

Additionally, the Manager shall keep updated on its website the information referred to in the preceding paragraph regarding the marketers of participation quotas that work for it and for its commercializing entities.

Presentation of information
Art. 44.- The documentation presented to the Superintendency, in compliance with what is provided for in these Standards, must conform to the corresponding legal formalities, especially regarding:
a) The photocopies presented must be legible and certified by a notary public authorized in El Salvador. In cases where the photocopies correspond to the Tax Identification Number (NIT) or its Graphic Representation, notarial certification will not be required; (2) b) The signatures that match in all types of documentation must be authenticated by a notary public authorized in El Salvador; and c) The documentation presented originating from abroad, both the photocopies and the signatures contained therein, must be authenticated or certified by a foreign notary or official, as appropriate, and must follow the respective procedure for legalization of signatures or apostille.

Sanctions
Art. 45.- Non-compliance with the provisions contained in these Standards will be sanctioned in accordance with what is established in the Law on Supervision and Regulation of the Financial System.

Unforeseen Aspects
Art. 46.- Aspects not provided for in terms of regulation in these Standards will be resolved by the Standards Committee of the Central Reserve Bank of El Salvador.

Validity
Art. 47.- These Standards will enter into force as of October three, two thousand sixteen.

MODIFICATIONS:
(1) Modifications to Articles 4, 5, 7, 9, 10, 23, 30, 31, 41 and incorporation of Articles 9-A, 9-B, 31-A and 31-B, approved by the Bank through its Standards Committee, in Session CN-14/2021, of October four, two thousand twenty-one, with validity as of October twenty-one, two thousand twenty-one. (2) Modifications to Articles 7, 30 and 44, approved by the Bank through its Standards Committee, in Session No. CN-02/2022, of February twenty-one, two thousand twenty-two, by reforms contained in Legislative Decree No. 203 to the Law on the Registration and Special Control of Taxpayers to the Treasury, with validity as of March eight, two thousand twenty-two.

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

(3) Modifications in Consideration VI, in Articles 8, 12, 13, 15, 18, 25, 28, 38 and 39, and in Annexes No. 1, 2 and 3, approved by the Bank through its Standards Committee, in Session No. CN-03/2026, of March nineteen, two thousand twenty-six, with validity as of April six, two thousand twenty-six.

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

Annex No. 1
MODEL OF SWORN DECLARATION FOR SHAREHOLDERS OF A COMPANY NOT INTEGRATED INTO THE FINANCIAL SYSTEM THAT IS INTERESTED IN MARKETING PARTICIPATION QUOTAS

In the city of San Salvador, at _______ hours of the day ________ of _______ of two thousand .
Before me, _______ notary of the domicile of ______________ appears the gentleman _________ of __________________ years, (profession) _______, from the domicile _____________ whom I know (or do not know), holder of (or I identify by) Unique Identification Document number (or passport number)_____, with Tax Identification Number _______, and HE TELLS ME: That in his capacity as shareholder of the company ___________________ (or Legal Representative of the company ________________, which is a shareholder of the company _______________), UNDER OATH MAKES THE FOLLOWING DECLARATIONS ABOUT HIS PERSON (OR ABOUT THE COMPANY HE REPRESENTS): A) That he has not been judicially qualified as responsible for a negligent or fraudulent bankruptcy. B) That he has not been administratively or judicially sanctioned for participating in a serious violation of laws and norms of a financial nature, both in national and foreign jurisdiction. C) That he has not been convicted by a final judgment in the country or abroad for having committed or participated fraudulently in the commission of any crime. D) That it has not been judicially proven that he participated in activities related to drug trafficking and related crimes, and with money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction, both in the national jurisdiction and abroad. The undersigned notary certifies: that I explained to the appearing party about what is established in the Penal Code, regarding the crime of ideological falsity, regulated in article two hundred and eighty-four. Thus the appearing party expressed himself to whom I explained the legal effects of this notarial deed, which consists of _____ page(s) front and back; and having read to him what was written by me, in a single act without interruption and in its entirety, he ratifies its content and we sign. I CERTIFY. (3)

The Sworn Declaration must comply with what is established in the Notary Law.

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

Annex No. 2
MODEL OF SWORN DECLARATION FOR DIRECTORS, MANAGERS OR ADMINISTRATORS OF A COMPANY NOT INTEGRATED INTO THE FINANCIAL SYSTEM THAT IS INTERESTED IN MARKETING PARTICIPATION QUOTAS

In the city of San Salvador, at _______ hours of the day ________ of _______ of two thousand .
Before me, _______ notary of the domicile of ______________ appears the gentleman _________ of __________________ years, (profession) _______, from the domicile _____________ whom I know (or do not know), holder of (or I identify by) Unique Identification Document number (or passport number)_____, with Tax Identification Number _______, who acts in his own name, and HE TELLS ME: That in his capacity as director (manager or administrator) of the company ___________________, UNDER OATH MAKES THE FOLLOWING DECLARATIONS: A) That he has knowledge in financial or marketing topics. B) That he has not been judicially qualified as responsible for a negligent or fraudulent bankruptcy. C) That he has not been administratively or judicially sanctioned for participating in a serious violation of laws and norms of a financial nature, both in national and foreign jurisdiction. D) That he has not been convicted by a final judgment in the country or abroad for having committed or participated fraudulently in the commission of any crime. E) That it has not been judicially proven that he participated in activities related to drug trafficking and related crimes, and with money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction, both in the national jurisdiction and abroad. The undersigned notary certifies: that I explained to the appearing party about what is established in the Penal Code, regarding the crime of ideological falsity, regulated in article two hundred and eighty-four. Thus the appearing party expressed himself to whom I explained the legal effects of this notarial deed, which consists of _____ page(s) front and back; and having read to him what was written by me, in a single act without interruption and in its entirety, he ratifies its content and we sign. I CERTIFY. (3)

The Sworn Declaration must comply with what is established in the Notary Law.

CNBCR-08/2016
NDMC-10
TECHNICAL STANDARDS FOR THE MARKETING OF PARTICIPATION QUOTAS OF OPEN INVESTMENT FUNDS Approval: 02/09/2016 Validity: 03/10/2016 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador.
Tel. (503) 2281-8000 www.bcr.gob.sv

Annex No. 3
MODEL OF SWORN DECLARATION FOR APPLICANTS FOR COMMERCIAL AGENTS OF OPEN INVESTMENT FUNDS

In the city of San Salvador, at _______ hours of the day ________ of _______ of two thousand .
Before me, _______ notary of the domicile of ______________ appears the gentleman _________ of __________________ years, (profession) _______, from the domicile _____________ whom I know (or do not know), holder of (or I identify by) Unique Identification Document number (or passport number)_____, with Tax Identification Number _______, who acts in his own name, and HE TELLS ME: That in his capacity as applicant for commercial agent of participation quotas, UNDER OATH MAKES THE FOLLOWING DECLARATIONS: A) That he has a university degree of _______ issued by the University __________. B) That he has knowledge and experience of _____ years in stock market and financial topics. C) That he has not been judicially qualified as responsible for a negligent or fraudulent bankruptcy. D) That he has not been administratively or judicially sanctioned for participating in a serious violation of laws and norms of a financial nature, both in national and foreign jurisdiction. E) That he has not been convicted by a final judgment in the country or abroad for having committed or participated fraudulently in the commission of any crime. F) That it has not been judicially proven that he participated in activities related to drug trafficking and related crimes, and with money laundering, terrorism financing and financing of the proliferation of weapons of mass destruction, both in the national jurisdiction and abroad. The undersigned notary certifies: that I explained to the appearing party about what is established in the Penal Code, regarding the crime of ideological falsity, regulated in article two hundred and eighty-four. Thus the appearing party expressed himself to whom I explained the legal effects of this notarial deed, which consists of _____ page(s) front and back; and having read to him what was written by me, in a single act without interruption and in its entirety, he ratifies its content and we sign. I CERTIFY. (3) The Sworn Declaration must comply with what is established in the Notary Law.

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